Could a trust be a good option for myself and my family?
There are trusts for all kinds of circumstances: whether you are saving money for your children, reducing inheritance tax or making provision for a vulnerable person. Our expert accountants can help you decide if a trust is the right option for you, and can provide the knowledge and support you need to make that trust effective and HMRC-compliant. Each type of trust is taxed differently.
What is a trust?
A trust is a legal arrangement that owns assets and is administered by trustees on behalf of the beneficiaries. The trustees are legally bound to administer the assets in line with the trust deed. Involved in every trust is a settlor (the person who puts assets into a trust), a trustee (the person who manages the trust) and a beneficiary (the person who benefits from the trust).
What types of trust are there?
- Bare trusts – assets are held in name of the trustee, but a beneficiary has the right to all of the capital and income at any time if over 18.
- Interest-in-possession trusts – the beneficiary has an immediate right to income from the trust as it arises, but will usually not have rights over the capital.
- Discretionary trusts – trustees have the discretion as to how to use the trust income. The trust deed may also give trustees the discretion on how to distribute capital.
- Charitable purpose trusts - these can be created for the relief of poverty; the advancement of education; the advancement of religion; and other purposes that benefit the community
- Non-resident trusts - a trust administrated by trustees who are not resident in the UK for tax purposes OR a trust where some of the trustees are UK residents but the settlor of the trust was not a UK resident at the time of setting up the fund or transferring ownership of assets.
- Other more specialist trusts include trusts for vulnerable people, personal injury trusts and mixed trusts.
How can BSR Bespoke help you set up a trust?
Setting up and administering a trust can be complex. Different trust types have different tax rules, and the situation is dynamic. If you are considering setting up a trust, our experienced team of accountants in Tunbridge Wells can:
- advise you on the most appropriate type for you.
- talk you through the tax implications.
- help you to set it up and register it with the Trust Registration Service.
- support you with all the accounting and taxation services you need
- make sure that the trust is HMRC-compliant.
- keep track of the ever-changing trust-related tax implications and obligations.